Trading Plan For Monday ( NVDA, SBUX, FFIV, CHKP, VRSN, KWK)
Posted on October 24, 2010 by trader21 in GLOBAL CHART ANALYSIS
Our open positions were on fire again on Friday even though the market was split. There was a stealth rally in the tech names and it looks the names we have been positioned in that have been setting up finally got a boost.
NVDA rallied 6.4%
FFIV is trying to get off our caution list and has finally rallied back above resistance at the 50 day moving average on heavy volume. Let’s hope that move continues.
Our SBUX position has finally blasted off and was up 4.4% on Friday alone
After a modest pullback last week CHKP has continued to hit new highs for us and is now up 18% in less than a month
SLG has continued its move highs as did VRSN which is finally getting some extended moves into new high territory
We aren’t going to let some of these fresh gains get away so we have added a trailing stop to the following names
KWK, NVDA, CTSH
KWK
CTSH
See open position spreadsheet for price levels
NEW SETUPS
The path of least resistance is higher so we are obviously still looking to add positions on the long side. We have had short term strength as every pullback has been gobbled up by aggressive buyers at short term support levels. We are overdue for a pullback but like we have been mentioning we expect a rally up into the midterm elections. We could see some increased volatility during this next big week of earnings but we see the odds of an aggressive selloff before the elections as low. We are getting close to the April/May highs so we should start to see some resistance at those levels. This selloff at resistance levels will most likely hit after the elections and will be the “Big Test” for what this market does going into year end.
When we selloff, if we hold up and then rally to new highs, odds favor a rally into year end. If we hit resistance and selloff on heavy volume followed by another failed attempt to break through the old highs than we will most likely see a flat market going into year end.
We still see odds favoring a rally into year end but depending on the result we get from the above test will tell us what we need to do.
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Thanks,
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